Bankruptcy has nothing to do with the tenant. If a bank forecloses on the mortgage, US federal law requires the bank to give the tenants a 90 day notice to quit, if they want the building emptied. But, it could be that the landlord will survive the bankruptcy, and there will be no foreclosure.
Rent is not covered under bankruptcy: a landlord still has the right to collect rent and evict tenants who don't pay.
No. Your rent is advanced payment for your right to stay in your apartment/home.
When a tenant files for bankruptcy, this will apply to any money tenant owes. In the case of rents, which is not a form of credit, you still must pay to landlord your rent or face the probability of eviction. If you owe your landlord back rent and declare bankruptcy, then you can include this back rent as part of your debt. Back rent is considered a form of credit, because you owe this money to your landlord and he has continued to grant you the right to stay there. It should be noted that whenever a landlord commences eviction proceedings against a tenant, it is never on the grounds of owing back rent. Your landlord's claims against you in small claims court covers that issue.
The basic rule is as follows: if your landlord files bankruptcy that is a matter between your landlord and his creditors, not you, the tenant. You are still required to pay rent or be evicted, as long as your landlord has control over the property. This applies to whether the landlord has filed for bankruptcy or if the property is under foreclosure. In either case, if you end up staying on the property, the new landlord will provide further instructions on whether to stay or to move.
HIS portion of ownership may well need to be transferred (bought out), during the BK to pay his creditors. That can normally happen by the other TC owners doing so (sometimes favorably), or to another party.
Of course not.
It depends on the way the house is included in the bankruptcy. If the mortgage is up to date and the landlord is reaffirming the mortgage, there should be no effect. If the landlord is abandoning the property to the mortgagee, you will either get a notice to start paying rent to the mortgagee or a notice to quit or both. Talk to a bankruptcy lawyer right away, as there are some things you may be able to do to delay things or get help moving.
Unless the tenant has some kind of evidence that a foreclosure sale has taken place, they should pay the rent to the landlord. Unfortunately, this can be difficult for a tenant to figure out; at what point the bank actually 'owns' the property is a difficult legal question, differing by state. In most states, a tenant can ask the Registry of Deeds who owns the property.General most lenders when they realize the property is being purchased to be used as a rental property will include a clause in the mortgage agreement that will allow the lender to collect the rent when the owner/landlord defaults on the mortgage. If the landlord files for bankruptcy, the property will generally be taken over by the bankruptcy trustee. You will have to pay the rent to the bankruptcy trustee. If the landlord has filed a Chapter 13 bankruptcy, you may have to pay the rent directly to the lender or the landlord depending on the terms of the court approved payment plan. If the house is sold in foreclosure, the new owner cannot evict you. You must first be served a three day notice and the new owner must file a lawsuit to evict you after the three days have expired. For an official opinion, it is advised you seek legal counsel.
Yes and no. A TENANT can terminate a commercial lease by filing bankruptcy. Under Section 365(b) of the Bankruptcy Code, a tenant has 120 days from filing a bankruptcy petition to either assume or reject the lease. This can be extended once by 90 days, with court permission. Unless the tenant files a timely motion with the bankruptcy Court to assume the lease (and cures past defaults and provides "adequate assurances" of future performance), the lease will automatically be deemed rejected. If the lease is at an above-market rental, or otherwise disadvantageous to the tenant, the tenant should surrender possession and bring an earlier motion to reject the lease. If the lease is at a below market rental, the tenant should consider assuming the lease and assigning it through bankruptcy. Under Bankruptcy Code Section 502(B)(6), the tenant will still be liable to the landlord for damages for early termination of the lease, but these damages are subject to a "cap" equal to 15% of the value of the unexpired lease term - not to exceed three (3) years rent. The landlord wil have an unsecured creditor's claim for these damages, and will share equally with all other unsecured creditors in the bankruptcy. If a tenant continues to occupy the premises after the bankruptcy filing, the landlord will have what is known as a priority "administrative" claim for the rental value during that period, and will be given preference over other general unsecured creditors to recover those amounts. A tenant's bankruptcy will not terminate liability under any personal guarantees given in connection wit the lease, unless the guarantor also files for bankruptcy. Depending on how the lease and the guaranty are structured, the guarantor may not be able to claim the benefit of the "cap" on damages. A LANDLORD may not unilaterally terminate a commercial lease by filing bankruptcy. Under Section 365(h) of the Bankruptcy Code, a tenant whose landlord has filed bankruptcy has the option to either treat the lease as terminated and vacate the space or to remain in possession (and continue paying the rent) for the balance of the lease term (including any extension options, if timely exercised by the tenant). There are many subtle nuances and exceptions to these basic rules and a party to a commercial lease should seek the advice of competent counsel before taking action to terminate that lease.
The landlord needs to prove it is false.
If it was in reference the bankruptcy stay being lifted the landlord can proceed with the eviction process. The case will remain pending until the landlord files a motion and receives permission from the court to proceeed. If the state allows self-help a court order is not necessary the one exception being public funded housing, such as a Section 8.
Most likely. A security depsit is something that every state allows landlords to collect. The purpose of security deposits is to assure that a tenant pays rent on time and keeps the property in good condition. Half of the states place limitations on how much a security deposit can be. In addition, there are usually limitations on how a security deposit can be used by a landlord. Rent and water damages are the type fo thing that a security deposit is supposed to cover. You should look into how much damage there was as you may still be owed some money back. But the fact that you filed bankruptcy does not necessarily entitle you to your security deposit. It may be better to think of it as money already spent than a refund you are supposed to get back.
This is not a question. Good luck. If the question is, "Can one collect unsecured debt from a bankrupt company?" The answer is, "only if property is administered by the trustee."
Yes, the judgment typically stays on the tenant's record and can negatively impact their credit score and rental history. This can make it difficult for the tenant to rent a new property in the future and may also affect their ability to secure loans or credit in other areas of their life.